In the case of City of Mitchell v. Dakota Central Telephone Company, 1917, the Supreme Court was tasked with determining whether a city ordinance that required telephone companies to bury their wires underground was constitutional. The Dakota Central Telephone Company argued that this requirement constituted an unreasonable use of police power and violated its Fourteenth Amendment rights by depriving it of property without due process. However, the court ruled in favor of the City of Mitchell, stating that such regulation falls within a municipality's legitimate exercise of police powers for public safety and welfare purposes. It further noted that there is no violation as long as there is reasonable ground for believing that it promotes public convenience or protects public interests against injury from business pursuits subject to government regulation.

In the dissenting opinion for the case City of Mitchell v. Dakota Central Telephone Company, Justice Holmes disagreed with the majority's ruling that a city ordinance requiring telephone companies to bury their wires was unreasonable and unconstitutional. He argued that it is within a municipality's power to regulate local affairs and protect its citizens' welfare, including aesthetic considerations such as maintaining an uncluttered skyline. Furthermore, he contended that if a company chooses to operate in a city knowing these regulations exist or may be implemented in future, they implicitly consent to abide by them. Therefore, according to Justice Holmes, there should not be any constitutional issue with enforcing such ordinances on businesses operating within municipal boundaries.